ICV Certification in UAE
The UAE provides a significant advantage for businesses looking to expand and engage in the public and private sectors. Obtaining the ICV (In-Country Value) certification opens up new doors for companies to qualify for government contracts and demonstrate their contribution to the UAE’s economy. With streamlined processes, we ensure:
- Fast and Efficient processing
- Tailored Assistance
- Seamless Renewal
In today’s competitive business environment, standing out and demonstrating a commitment to the local economy is crucial for companies. One effective way to achieve this in the United Arab Emirates (UAE) is securing the In-Country Value (ICV) certificate. The certification not only offers a competitive edge but also strengthens relationships with stakeholders.
What is ICV Certification?
The In-Country Value (ICV) initiative introduced by the UAE government is designed to support the growth of local industries and boost the country’s economic development. Led by the Ministry of Industry and Advanced Technology (MoIAT), ICV certification measures how much a business contributes to the UAE economy by evaluating the local content of the goods and services it provides. It primarily benefits UAE nationals, businesses, and local communities.
Obtaining the ICV certification is now a requirement for suppliers involved in government and semi-government procurement contracts in the UAE. By earning this certification, the company can enhance its chances of securing government contracts while aligning with the UAE’s long-term economic vision.
Why is ICV Certification Important?
As mentioned earlier, the ICV program plays a crucial role in supporting the UAE’s broader economic vision by encouraging businesses to invest in local resources, talent, and infrastructure. Some of the reasons why ICV certification in UAE is essential for businesses are mentioned below:
- Access to Government Contracts: ICV certification is often a mandatory requirement for companies to bid on government contracts in the UAE.
- Boosts Local Economy: By sourcing goods and services locally, businesses can contribute directly to the growth and development of the UAE economy.
- Offers Competitive Edge: Companies having ICV certification stand out in the market, demonstrating their commitment to local development and long-term sustainability.
- Fosters Transparency and Trust: Obtaining ICV certification in UAE signals dedication to transparent business practices and economic sustainability in the country.
Strategic Goals of In-Country Value Program in UAE
Launched as part of the ‘Projects of the 50’, the In-Country Value (ICV) program is designed to diversify the UAE economy, create private sector jobs, attract foreign investment, and enhance GDP. Some of the key objectives include:
- Economic Diversification: Stimulate UAE economy and reduce dependency on specific sectors by encouraging businesses to invest and operate locally.
- Technology and Knowledge Transfer: Promote the transfer of expertise and technologies to the UAE, benefiting local businesses and the workforce.
- Employment for UAE Nationals: Increase job opportunities for Emiratis by supporting the hiring and training of UAE citizens.
- Strengthen local Industries: Encourage companies to source goods and services from local suppliers in a bid to support domestic industries.
- Attracting Foreign Investment: In addition to benefiting the investing companies, making meaningful contributions to the overall growth of the UAE economy.
Who Needs an ICV Certificate in the UAE?
If you are planning to set up a mainland company, obtaining the In-Country Value (ICV) certification can significantly boost reputation and improve chances when bidding for both government and private sector contracts. The following can obtain ICV certification in the UAE:
- Companies supporting Local Economy: Businesses looking to establish themselves as contributors to the UAE's economic growth and job creation.
- Businesses across key Sectors: Companies seeking to participate in government tenders and contracts, particularly in sectors like oil and gas, construction, transportation, and healthcare.
- Suppliers and Contractors: Essential for those directly working with the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries.
Benefits of Obtaining In-Country Value Certificate
Securing ICV certification in UAE offers numerous advantages for businesses, particularly those aiming to expand their operations or engage in government projects. Some of the key benefits include:
- Access to Government Tenders - ICV certificate offers a competitive edge when bidding for tenders in sectors like oil and gas, construction, transportation, and healthcare. Government projects often prioritize companies with high ICV scores.
- Fosters Long-term Partnerships A strong ICV score can open the doors for lasting collaborations with government bodies, major corporations, and key stakeholders across the UAE.
- Enhanced Supply Chain Efficiency By promoting local sourcing, ICV certification in UAE helps businesses streamline their supply chains, potentially reducing costs and improving operational efficiency.
- Eligible for Financial Incentives The UAE government offers financial incentives, such as tax breaks or grants, for companies with high ICV scores. Holding an In-Country Value certificate positions the business to take advantage of such benefits.
How to Obtain ICV Certification in UAE?
The step-wise process of availing the ICV certificate in UAE is mentioned below:
The first step is to determine if ICV certification is mandatory for the industry the business caters to or if the targeted tenders prioritize ICV scores.
The next step is to prepare the documents as per the Ministry of Industry and Advanced Technology (MoIAT) guidelines.
To manage all communications with regard to handling the evaluation and certification process, you must connect with a reliable, MoIAT-approved certifying firm.
Complete the ICV template using the company’s data, optimizing the ICV score while ensuring full compliance with MoIAT guidelines.
Once the template is finalized, the application must be submitted along with the required documents to the certifying body.
Upon successful evaluation, the certifying body issues the ICV certificate.
Documents Required for ICV Certification in UAE
- Copy of business’s registration certificate confirming its legal status and operations in the UAE.
- Audited financial statements for the past 1-2 years to assess local spending and overall financial health.
- Documentation of local expenditures, including wages, payments to local suppliers, and procurement of materials and services.
- Employee list with details like their nationality, salary, and roles, particularly for UAE nationals.
- Evidence of local tax payments, customs declarations, or other official payments showing company’s investment in the local economy.
- Information about any investments made within the UAE, such as in infrastructure or technology.
- Contracts with local suppliers and service providers to verify local sourcing and procurement activities.
- Additional documents required based on MoIAT’s specific guidelines.
What our clients say
I had a great experience registering my company in the UAE with Gryffin Capitalist. The Gryffin Capitalist team assisted in selecting the right Emirate to complete all legal steps.
Thanks to Gryffin Capitalist, starting my business in the UAE was smooth and efficient. They offered advice on company formation and licensing and assisted in opening a bank account.
Starting a business in the UAE seemed complicated, but Gryffin Capitalist made it seamless. The team is very knowledgeable, professional, and responsive.
Why Choose Gryffin Capitalist
If you are planning for business setup in UAE either in the mainland or free zones, aligning with the ICV program can greatly improve the company’s strategic position and market appeal. Obtaining ICV certification in UAE strengthens the business’ long-term sustainability in the region. We at Gryffin Capitalist can guide you through the entire process in a seamless manner . Contact us today to get started!.
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Frequently Asked Questions (FAQs)
The ICV score is a measure of a business's contribution to the UAE economy, reflecting its local spending and investments. A higher ICV score signifies a greater economic benefit the company brings to the country.
For calculation of ICV score, factors like local spending on UAE-based suppliers, employment of UAE nationals and their salaries, investments in local infrastructure, and contributions to R&D and innovation are considered.
The fees for ICV certification vary based on your company’s size and complexity. The total cost includes auditing fees, document preparation, and certification issuance. For customized cost, reach out to us.
ICV certification is not mandatory for all businesses, but it is required if the business intends to participate in UAE government or semi-government tenders.
The process typically takes 2 - 4 weeks, depending on the complexity of the business and the availability of required documents.
